Rigetti Computing (RGTI) shares took a hit on Monday as investors reacted to news of a new AI model from DeepSeek. The R1 model, developed for less than $6 million, offers capabilities similar to OpenAI’s ChatGPT at a much lower cost. According to reports, the R1 model uses approximately 50,000 Nvidia H100 GPUs.
Third-party tests suggest that DeepSeek’s AI model could be a serious competitor in the AI space, raising concerns about the high valuations of leading AI companies like Nvidia. Analysts from Saxo have commented on the cost-effective nature of DeepSeek’s AI model and its potential impact on the competitive landscape.
deepSeek competition affects Rigetti stocks
The news has led to worries about Rigetti’s position in the market and the possible effects on American tech companies heavily invested in GPUs. At the time of writing, Rigetti shares were trading 6.52% lower at $12.34. The recent decline in Rigetti’s stock price comes amid a period of volatility in the AI and quantum computing sectors, as companies face increased scrutiny and rapid shifts in market sentiment.
Despite the recent downturn, Rigetti Computing remains a notable player in the quantum computing industry, focused on developing practical applications for quantum computing to revolutionize fields such as cryptography, optimization, and drug discovery. Investors are divided over the implications of Rigetti’s recent stock performance, with some seeing it as a temporary dip and others cautioning about potential underlying issues. As always, investors are advised to conduct thorough research and consult with financial advisors to better understand the long-term prospects of Rigetti Computing and the broader quantum computing and AI markets.
Noah Nguyen is a multi-talented developer who brings a unique perspective to his craft. Initially a creative writing professor, he turned to Dev work for the ability to work remotely. He now lives in Seattle, spending time hiking and drinking craft beer with his fiancee.
